Develia S.a. · GPW:DVL
Develia — Q3 2024 Earnings Presentation
37 slides from Develia's earnings presentation, December 2024
Slide 1: Presentation for Investors Q3 2024
PRESENTATION FOR INVESTORS Q3 2024
Slide 2: Develia Group – Summary Q3 2024
2 Develia Group – Summary Q3 2024 ❑ Housing sector 2,700 premises sold in 3Q 2024 vs 2,059 in Q3 2023 1,797 premises delivered in 3Q 2024 vs 1,298 in Q3 2023 201 reservation agreements as at the end of Q3 2024 3,482 new premises with construction started on the offer in Q3 2024 At the end of Q3 2024
Slide 3: Agenda
Agenda 1. Market situation 2. Housing sector 3. Commercial real property 4. Financial Data 5. Attachments
Slide 4: 1. Market situation
1. Market situation 44 DEVELIA
Slide 5: Housing market - September 2024
Housing market - September 2024 Property developers operating on seven markets (Warsaw, Kraków, Wrocław, Gdańsk, Sopot, Gdynia, Poznań, Łódź and Katowice) have sold more than 32,000 flats since the beginning of the year, i.e. by 29% less than in the corresponding period of the previous year. In the
Slide 6: Housing market
Housing market 6 Number of building permits granted, constructions started, and flats delivered by developers on a quarterly basis Q3 2024 In Q3 2024, 30,900 flats were delivered, which was 4,6% less than in the preceding year. The number of flats for which building permits were issued or for which
Slide 7: 2. Housing sector
2. Housing sector 44 DEVELIA
Slide 8: Biggest companies in the property developer business in Q3 2024
Biggest companies in the property developer business in Q3 2024 Source: Own elaboration based on z https://www.rp.pl, company announcements and https://www.bankier.pl (*) development agreements, preliminary sales agreements and non-refundable reservations in total (**) a company listed on the Cataly
Slide 9: Premises sold
9 Premises sold Housing segment as at 09/30/2024 P A P A P A KA W KA W Ł Ł A A K AK W K AK W W ŁAW W ŁAW WA AWA WA AW A 2 700 premises sold in Q3 2024 r. 201 reservation agreements
Slide 10: Premises sold – sales targets
Premises sold – sales targets 10 Housing segment as at 9/30/2024 / sales targets 2024 Sales targets in 2024 is 2,900-3,100 premises
Slide 11: Premises delivered
11 Premises delivered Housing segment as at 9/30/2024 P A KA W P A Ł KA W A Ł K AK W A W ŁAW WA AWA K AK W W ŁAW WA AWA
Slide 12: Delivery potential based on flats under construction
12 Delivery potential based on flats under construction Housing segment as at 9/30/2024 / Sales progress acc. to commencement of deliveries P A KA W Ł 743 K AK W A W ŁAW WA AWA land bank sold f or sale The delivery target in 2024 is 2,700-2,900 In Q3 2024, 1,797 premises were delivered, including 18
Slide 13: Premises on the offer and land bank
13 Premises on the offer and land bank Housing segment as at 9/30/2024 P A KA W Ł A K AK W W ŁAW WA AWA on of f er added in land bank The 2024 target for new premises to be added to the offer – 3,500-3,700 new units
Slide 14: Assets – housing estates
Assets – housing estates (*) Aleje Praskie Przemyska Vita Gdańsk, Ujeścisko – Łostowice Warsaw, Praga-Południe available for sale: 156 available for sale: 203 under preparation: 373 Ceglana Park Bemowo Vita Katowice, Brynów Warsaw, Bemowo Poznań available for sale: 163 available for sale:
Slide 15: Changes in investment portfolio
Changes in investment portfolio In 2023, the Group purchased land that will enable it to construct more than 2,000 units, an average price for usable floor space of a dwelling is PLN 2,327 In 2023, the Group increased its land bank by acquiring Nexity Polska, with 2,100 units added to the land bank.
Slide 16: 3. Commercial real property (disinvested)
3. Commercial real property (disinvested) 16
Slide 17: Assets
Assets Commercial facilities Investment land Investment land Arkady Wrocławskie Malin, Area of 169 ha Wrocław, ul. Kolejowa ▪ In December 2023, we entered into a preliminary ▪ The conclusion of the JV agreement with Hillwood Malin sales and purchase agreement Development Logistics, LLC regarding the
Slide 18: 4. Financial Data
4. Financial Data 44 DEVELIA
Slide 19: Financial Results
19 Financial Results ROE and ROE (adjusted net profit) Revenue from sales (mPLN) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ad usted net profit eal property development easing activity and holding Net profit and adjusted net profit1 (mPLN) , , , , Impact of the purchase price alloca
Slide 20: Assets
20 Assets Investment property and assets held for sale (mPLN) Inventory value land for development (mPLN) GA , , , , , and for development nventory GAV including the Kolejowa & Malin Projects and without adjustment resulting from IFRS 16 – a sum of PLN 29,9 m Equity (mPLN) Land designated for develo
Slide 21: Financial Position
Financial Position Bond maturity structure (mPLN) Indebtedness1 – ratios Total bonds: PLN 655,4 mPLN , , , , , , , , , , , , , , , , , , , , , , , , , , , , uity inancial liabilities Bank loans commercial segment (mPLN) ash security pen ousing scrow Account et dept/ uity Lp. Bank/Project Total repay
Slide 22: Dividend Policy
22 Dividend Policy Dividend paid out in consideration of adjusted consolidated net profit (mPLN) Dividend rate (*) 9,72% 10,31% 5,74% 5,10% 13,22% 8,25% 8,96% Payout rate 73,8% 72,9% 23,2% 76,8% 128,5% 75,3% 77,3% DPS (PLN) 0,24 0,27 0,10 0,17 0,45 0,40 0,50 (1) The dividend policy was suspended in
Slide 23: 5. Attachments
5. Attachments 44 DEVELIA
Slide 24: 2024 Targets
2024 Targets The sale under development and preliminary sales agreements of 2 900– 3 100 units Preparing the building for sale in 2025. Arkady Wrocławskie The delivery 2 700– 2 900 units Further negotiations with institutional investors in the co-living segment – making an agreement to carry out at
Slide 25: Strategy – long term goal
D v l G ’ S gy f Y -2028 Strategy – long term goal Further substantial expansion of the scale of operations Expanding own operations as the contractor of works as in the flats for sale segment to the sales level of 4,500 part of the group flats in 2028 Consistently replenishing and securing land ban
Slide 26: Key KPIs for Years 2024-2028 – Summary
D v l G ’ S gy f Y -2028 Key KPIs for Years 2024-2028– Summary To increase the scale of operations Projekt Malin – to carry out the from nearly 2,700 to 4,500 (in 2028) Dividend potential of above PLN warehousing project on a JV in the housing segment, increasing 1,350 m for payment in the period ba
Slide 27: Revaluation of investment property
27 Revaluation of investment property
Slide 28: Develia Group – P&L
Develia Group – P&L 28 30 September 2024 30 September 2023 Operating activity Sales revenue 1 037 594 786 160 Revenue from sales of services 10 057 27 306 Revenue from sales of goods and products 1 027 537 758 854 Cost of sales (701 163) (548 257) Pre-tax proffit/(loss) on sales 336 431 237 903 Reva
Slide 29: Develia Group – Balance sheet/assets
Develia Group – Balance sheet/assets 29 30 September 2024 31 December 2023 Assets A. Non-current assets 436 659 432 208 1. Goodwill 66 858 66 858 2. Intangible assets 5 360 4 775 3. Property, plant and aquipment 24 244 10 409 4. Non-current recievables 2 467 11 858 5. Land classified as fixed assets
Slide 30: Develia Group – Balance sheet/liabilities
Develia Group – Balance sheet/liabilities 30 30 September 2024 31 December 2023 Equity and liabilities A. Equity 1 541 685 1 548 422 I. Equity attributable to shareholders of the parent 1 539 678 1 546 858 1. Share capital 452 280 447 558 2. Other capital 871 005 823 677 3. Net profit/(loss) 216 393
Slide 31: Develia S.A. – P&L
31 Develia S.A.– P&L 30 September 2024 30 September 2023 Operating income Revenue from sale of services, products and goods 434 664 393 176 Revenue from interest and discount 53 674 21 461 Revenue from dividend 274 327 205 033 Other financial income 1 528 37 802 Other operating income 4 450 513 Tota
Slide 32: Develia S.A. – Balance sheet/assets
Develia S.A. – Balance sheet/assets 32 Przestrzeń z widokiem na przyszłość www.develia.pl
Slide 33: Develia S.A. – Balance sheet/liabilities
Develia S.A. – Balance sheet /liabilities 33 Przestrzeń z widokiem na przyszłość www.develia.pl
Slide 34: Residential projects under construction
Residential projects under construction 34 • As of September 30, 2024, the Group had sold 3,135 residential units which were under construction at that time • As of September 30, 2024, one JV projects having the total of 184 residential units were being implemented • As of September 30, 2024, the Gr
Slide 35: Management Board
P ł Ru z z k V President Z ą R g f h S h l f Economics (SGH). He specialises in corporate financial management. He has been involved in the development business for almost 20 years, serving, among other things, as Finance Director at Orco Poland, Polish company Orco Property Group and as Finance Dir
Slide 36: Shareholding
4 Shareholdina Shareholders list NAME ‘Otwarty Fundusz Emerytainy PZU .Ziota Jesieri” Nationale-Nederianden Otwarty Fundusz Emerytainy Allianz Polska Otwarty Fundusz Emerytainy Generali Otwarty Fundusz Emerytalny PKO BP BANKOWY Otwarty Fundusz Emerytainy Other shareholders Total shares: Shareholders
Slide 37: Disclaimer
DISCLAIMER By taking part in a meeting during which this Presentation will be displayed and by reading slides presented you undertake to comply with the below restrictions. The foregoing applies to the Presentation, information contained herein presented orally by the Company or any person acting on